The goodwill recognised will not attract a tax deduction.
| Fair value | ||||
| £’000 | ||||
| Identifiable intangible assets: | ||||
| Product and marketing rights | 2,512 | |||
| Stock | 231 | |||
| Total net assets | (2,743 | ) | ||
| Cash consideration | 2,528 | |||
| Contingent consideration* | 50 | |||
| Total consideration | 2,578 | |||
| Gain from bargain purchase on acquisition | (165 | ) | ||
| * | The contingent consideration relates to various milestone payments which are dependent on the quarterly sales achieved in calendar years 2016 and 2017 and annual sales from 2018 to 2022 exceeding specified sales targets. The maximum amount payable was $26.0m however, the 2016 and 2017 sales targets were not achieved and management does not consider it likely that the 2018 to 2022 sales targets will be achieved either. |